The price of Bitcoin has declined to around $105,000 after a sharp drop due to escalating tensions in the Middle East, following an Israeli attack on Iranian nuclear sites on June 12.
This violent decline pushed Bitcoin to levels of $103,000 within hours before it attempted to recover currently, amidst a massive liquidation wave amounting to $636 million from the market, increasing fears of additional declines to $102,000 and possibly $101,000 in the coming days.
Despite the recent negative performance, optimism still dominates the analyses of senior experts, who believe that Bitcoin is capable of surpassing the $200,000 barrier before the end of 2025, relying on strong incentives that support this expected upward trajectory, and here are the most prominent ones:
Global institutions continue to buy Bitcoin to support their portfolios
Markets are witnessing an increasing institutional flow towards Bitcoin, as major companies from the United States, Europe, and Japan have started to include Bitcoin in their financial reserves to compete with treasury bonds. The increasing demand comes against a limited supply, especially after the recent halving that reduced mining rewards, leading to a growing scarcity that supports price increases.
Supply is shrinking.. and miners are reducing sales
Currently, miners are only injecting about 500 Bitcoin units daily into the markets, a very limited number compared to the demand from individuals, companies, and investment funds. This stark disparity between demand and supply enhances Bitcoin's chances of rising, according to the traditional supply and demand principle.
Bitcoin is turning into digital gold in the eyes of investors
The perception of Bitcoin as a safe asset and store of value, similar to gold, is increasing, especially amidst the volatility of the global economy and rising geopolitical risks. Investment funds, financial institutions, and even some governments have begun to adopt Bitcoin as an alternative reserve asset, providing it with a strong support base that paves the way for a potential new bullish phase.
Despite the current downturn, many analysts believe that Bitcoin still has a significant opportunity to rise towards $200,000 this year, supported by institutional trends, declining supply, and growing confidence in the digital currency as a reliable investment asset.
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